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SMG Company Trial Balance as of January 1, 2021 DR CR 30,000 50,000 42,000 12,000 Ordinary shares - 30,000 fully shares Retained Earnings Equipment Accumulated
SMG Company Trial Balance as of January 1, 2021 DR CR 30,000 50,000 42,000 12,000 Ordinary shares - 30,000 fully shares Retained Earnings Equipment Accumulated Depreciation Inventory Accounts Receivable Patents Accounts Payable Cash 20,000 10,000 15,000 8,000 13,000 100,000 100,000 At this date SMG is acquired by APL with SMG going into liquidation Ordinary shareholders of SMG Company are to receive 2 fully paid ordinary shares in APL for every share held or alternatively P2.50 in cash payable half at the exchange date and half in one year thereafter. Accounts Payable and cost of liquidation amounting to P5,000 were paid by SMG prior to turnover to BNC. 5,000 ordinary shares elect to receive cash BNC shares are selling at P1.10 The incremental borrowing rate of is 10% per annum. What is the cost of combination
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